Correlation Between China Vanke and Xiwang Foodstuffs
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By analyzing existing cross correlation between China Vanke Co and Xiwang Foodstuffs Co, you can compare the effects of market volatilities on China Vanke and Xiwang Foodstuffs and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Vanke with a short position of Xiwang Foodstuffs. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Xiwang Foodstuffs.
Diversification Opportunities for China Vanke and Xiwang Foodstuffs
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Xiwang is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Xiwang Foodstuffs Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiwang Foodstuffs and China Vanke is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Vanke Co are associated (or correlated) with Xiwang Foodstuffs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiwang Foodstuffs has no effect on the direction of China Vanke i.e., China Vanke and Xiwang Foodstuffs go up and down completely randomly.
Pair Corralation between China Vanke and Xiwang Foodstuffs
Assuming the 90 days trading horizon China Vanke is expected to generate 2.0 times less return on investment than Xiwang Foodstuffs. But when comparing it to its historical volatility, China Vanke Co is 1.36 times less risky than Xiwang Foodstuffs. It trades about 0.16 of its potential returns per unit of risk. Xiwang Foodstuffs Co is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 231.00 in Xiwang Foodstuffs Co on September 4, 2024 and sell it today you would earn a total of 187.00 from holding Xiwang Foodstuffs Co or generate 80.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Xiwang Foodstuffs Co
Performance |
| Timeline |
| China Vanke |
| Xiwang Foodstuffs |
China Vanke and Xiwang Foodstuffs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Xiwang Foodstuffs
The main advantage of trading using opposite China Vanke and Xiwang Foodstuffs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Xiwang Foodstuffs can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Xiwang Foodstuffs will offset losses from the drop in Xiwang Foodstuffs' long position.| China Vanke vs. Jiajia Food Group | China Vanke vs. Ligao Foods CoLtd | China Vanke vs. Qijing Machinery | China Vanke vs. Anji Foodstuff Co |
| Xiwang Foodstuffs vs. Poly Real Estate | Xiwang Foodstuffs vs. China Vanke Co | Xiwang Foodstuffs vs. China Merchants Shekou | Xiwang Foodstuffs vs. Huafa Industrial Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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